Global Human Resource Management Lecture 1 (2)

8/4/2019 Global Human Resource Management Lecture 1 (2)

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GLOBAL HUMAN RESOURCEGLOBAL HUMAN RESOURCE

MANAGEMENTMANAGEMENT

IMBA 552IMBA 552

International Business and HRMInternational Business and HRM


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PURPOSE OF THIS CLASSPURPOSE OF THIS CLASS

To understand the management of globalhuman capital

To understand the role of the global human

resource function

To begin pre-preparation for your

international experience

To begin the process of writing a thesis


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RANK COUNTRY POPULATION % OFWORLDPOPULATION

- World 6.7 billion 100%

1 Peoples Republic

Of China 1.3 billion 19.9%

2 India 1.1 billion 17.04%

3 United States .3 billion 4.57%

4 Indonesia .2 billion 3.47%

5 Brazil .18 billion 3.81%

6 Pakistan .16 billion 2.46%


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FACTS For PUBLICLY TRADEDFACTS For PUBLICLY TRADED

60,000 MNEs employ over than 45mm people60,000 MNEs employ over than 45mm people By 2010 this will increase to 75mmBy 2010 this will increase to 75mm

In 1957 US contributed 53% to global GDPIn 1957 US contributed 53% to global GDP today 18%today 18% In 2003 25 countries employed 40mm people with aIn 2003 25 countries employed 40mm people with a

total of USD 13.73 trillion in annual revenues and USDtotal of USD 13.73 trillion in annual revenues and USD45 trillion in assets45 trillion in assets

Key players besides US, Germany, Great Britain, FranceKey players besides US, Germany, Great Britain, Franceand Japan is; south Korea, Mexico, Russia, China, Braziland Japan is; south Korea, Mexico, Russia, China, Brazil


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OTHERSOTHERS

Some of the largest international firms areSome of the largest international firms areowned by families, especially in China,owned by families, especially in China,

Taiwan, Thailand, Hong Kong, Indonesia,Taiwan, Thailand, Hong Kong, Indonesia,Malaysia and SingaporeMalaysia and Singapore

Growing numbers of Small MultinationalsGrowing numbers of Small Multinationals

(SMEs)(SMEs) In Germany there are 350 SMEs thatIn Germany there are 350 SMEs that

dominate their market nichedominate their market niche


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DRIVERS FOR GLOBALIZATIONDRIVERS FOR GLOBALIZATION

Scale EconomiesScale Economies Scope EconomiesScope Economies Shorter Product Life CyclesShorter Product Life Cycles Direct Foreign InvestmentDirect Foreign Investment

TechnologyTechnology


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RATIONALE FOR GLOBAL HRMRATIONALE FOR GLOBAL HRM

Increased travelIncreased travel Rapid and extensive globalRapid and extensive global

communicationscommunications

Rapid transfer of new technologyRapid transfer of new technology Growing trade, foreign competitionGrowing trade, foreign competition Improving educationImproving education Emigration of large numbers of peopleEmigration of large numbers of people


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Porters Diamond (Adapted from Porter:1990)

Firm Strategy,Structure and

Rivalry

FactorEndowments Demand

Conditions

Related andSupporting Industries

COMPETITIVE ADVANTAGE OF NATIONS


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TRENDS IN THE INTERNATIONAL DIVISIONTRENDS IN THE INTERNATIONAL DIVISION

OF LABOROF LABOR--

Reichs NewW

orld OrderReichs NewW

orld Order

Routine ProductionRoutine ProductionServicesServices

InIn--person Servicesperson Services

Symbolic AnalyticSymbolic AnalyticServicesServices

ZeroZero--sum Nationalismsum Nationalism

CosmopolitanismCosmopolitanism

Positive EconomicPositive Economic

NationalismNationalism


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What is Human ResourceWhat is Human Resource

ManagementManagement

As a field it is about: the understanding,researching, applying and revising all humanresource activities in their internal and external

contexts as they impact the process of managinghuman resources in enterprises throughout the

global environment to enhance the experience ofmultiple stakeholders, including investors,customers, employees, partners, suppliers,

environment, and society.


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Forms of International HRMForms of International HRM

Operation of parentOperation of parent--country firmscountry firms Operation of foreign firms in the homeOperation of foreign firms in the home

countrycountry

Operation of Third party nationalsOperation of Third party nationals Employment of foreign citizens (or recentEmployment of foreign citizens (or recent

immigrants and/or their familiesimmigrants and/or their families


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DIFFERENCES BETWEEN DOMESTICDIFFERENCES BETWEEN DOMESTIC

AND INTERNATIONAL HRMAND INTERNATIONAL HRM Responsibility for greater number of activitiesResponsibility for greater number of activities Need for greater level of expertiseNeed for greater level of expertise

e.g. employment lawse.g. employment laws Necessity for closer involvement with employees (e.g.Necessity for closer involvement with employees (e.g.

expatriate familiesexpatriate families

Greatly expanded and different mix of employeesGreatly expanded and different mix of employees

Having to deal with more external influencesHaving to deal with more external influences Having to face greater exposure to problems andHaving to face greater exposure to problems anddifficultiesdifficulties


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Documents

Global Human Resource Management Lecture 1 (2)